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KiwiHead
LSU Fan
Auckland, NZ
Member since Jul 2014
6309 posts

Just took on a client who took out pay day loans
This guy is getting hosed.....he was on disability for a while, went back to work, the bills started to pile up and he compounds it by taking out a mafia style loan(s). I had no idea that it was possible to charge the type of interest that these companies do.

On top of that he allows these guys to draft his account every 2 weeks....he's literally paying 400 a month on a 700.00 loan.

I decided to just pay it off myself, to prevent more problems for the guy . I made him call his bank and stop the ACH debit since his account is set to be debited by these people tomorrow.

Anyone in the OT know anything about these "predatory" lenders and how they operate and how they are able to essentially get away with 680% APR?



OweO
New Orleans Pelicans Fan
Saints Fan
Member since Sep 2009
62063 posts

re: Just took on a client who took out pay day loans
quote:

he's literally paying 400 a month on a 700.00 loan.


For how many months? Yeah, I am not exactly sure, but I think I read somewhere where there are some places that charge as much as almost 50% interest.


Tbonepatron
LSU Fan
Member since Aug 2013
1921 posts

re: Just took on a client who took out pay day loans
Congrats on the broken kneecaps baw


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402
magildachunks
Member since Oct 2006
19294 posts

re: Just took on a client who took out pay day loans
quote:

Anyone in the OT know anything about these "predatory" lenders and how they operate and how they are able to essentially get away with 680% APR?





Bc people are either stupid or desperate.


And loan sharks are illeagal, although more ethical than this and banks.


CQQ
Houston Astros Fan
Member since Feb 2006
16127 posts

re: Just took on a client who took out pay day loans
quote:

how they operate and how they are able to essentially get away with 680% APR?


I don't understand this. They "get away with it" because dumbass people sign up and agree to it.


yellowfin
Chicago Cubs Fan
Coastal Bar
Member since May 2006
89361 posts

re: Just took on a client who took out pay day loans
Pretty sure 36% is the max in LA

ETA: and I disagree with having laws just to protect stupid people from themselves
This post was edited on 2/5 at 12:33 pm


theCrusher
LSU Fan
Slidell
Member since Nov 2007
451 posts

re: Just took on a client who took out pay day loans
watch episode 2 of Dirty Money on netflix.


TechDawg2007
New Orleans Saints Fan
Bawville
Member since Nov 2007
26878 posts

re: Just took on a client who took out pay day loans
People look at is as, "I'm getting $10,000 RIGHT NOW" They don't look at it as, "I'll end up broke in a couple months while still paying off the $10k in 3 year monthly installments of $555/month


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130
kywildcatfanone
Kentucky Fan
Wildcat Country!
Member since Oct 2012
47894 posts

re: Just took on a client who took out pay day loans
Unfortunately he agreed to the terms.


KiwiHead
LSU Fan
Auckland, NZ
Member since Jul 2014
6309 posts

re: Just took on a client who took out pay day loans
He was paying it for about a 6 month term. The guy probably clears 2500-2750 a month.

Actually still researching it as we speak. He took it out online


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31
Napoleon
New Orleans Saints Fan
Kenna
Member since Dec 2007
55248 posts

re: Just took on a client who took out pay day loans
A friend of mine did a title loan. Got $1300 against a $15000 truck.
If he don't pay he loses the truck.
First month he paid back $500. Well it's $95 to refinance. So it adds a $100 every month you don't pay it off. A year later and he owes $700 still.
It's crazy.


Pay day loans are only like $50. But you can refinance for $120 or so.

People with no credit and who need cash are easy targets.


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81
lsunurse
LSU Fan
Scottsdale, AZ
Member since Dec 2005
114435 posts

re: Just took on a client who took out pay day loans
Payday loans were voted illegal here a few years ago.


However....all those payday loan places did was just change to title loan places.


jiffyjohnson
LSU Fan
'Merica
Member since Nov 2011
2608 posts

re: Just took on a client who took out pay day loans
He took out a "mafia style" loan because the banks wouldn't loan it to him. 5 will get you 10 this guy has shite credit and was high risk. If he's set up on Bi-monthly autodrafts it's further evidence that he's not reliable with his payments.
This post was edited on 2/5 at 12:37 pm


Napoleon
New Orleans Saints Fan
Kenna
Member since Dec 2007
55248 posts

re: Just took on a client who took out pay day loans
Y'all remeber Western Sky financial?

It was $63,000 to pay back a $10k loan.

Do the math, it's right in the ad. 84 months of $743 for a $10k loan.


Image: https://consumermediallc.files.wordpress.com/2013/08/westernsky.png



LSUTigerBait07
Wofford Fan
SD, Chicago, or New Orleans
Member since Sep 2007
1404 posts

re: Just took on a client who took out pay day loans
There is a pretty good documentary on one of these companies on Netflix. Dirty Money.


KiwiHead
LSU Fan
Auckland, NZ
Member since Jul 2014
6309 posts

re: Just took on a client who took out pay day loans
36% applies to loans with a term of longer than 2 years, I'm finding out


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40
ccomeaux
LSU Fan
LA
Member since Jan 2010
4836 posts

re: Just took on a client who took out pay day loans
It's fee driven rather than rate driven.
Some state (most recently NY and NJ to follow soon) that are changing state law to include transactional fees into the usary law calculation.
La does not, the 36% usary law in La is strictly interest.


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20
Sao
SMU Fan
University Park, TX
Member since Jun 2009
33713 posts

re: Just took on a client who took out pay day loans

Dirty Money documentary. Preying on the lower income population is big business and big trouble. Be nice to your client and help him as much as you can.


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160
Napoleon
New Orleans Saints Fan
Kenna
Member since Dec 2007
55248 posts

re: Just took on a client who took out pay day loans
I agree, which is why all drugs should be legal.
Coke to wake up and heroin to go to sleep.


anc
Member since Nov 2012
9524 posts

re: Just took on a client who took out pay day loans
Yep. It’s pretty bad.

I worked with a lady that took out three times that. She paid 8000 for a 2000 loan and did not understand why it was a bad deal.


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